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DGSE announces preliminary Court approval of settlement

DGSE Companies announced that the U.S. District Court for the Northern District of Texas has granted preliminary approval of the previously announced proposed settlement of class action and derivative litigation relating to the company’s previously disclosed accounting irregularities and subsequent restatement of financial results. The proposed settlements will resolve all issues which are pending before the United States District Court for the Northern District of Texas, in the two filed cases. The proposed settlements are subject to final approvals of the District Court and require the company to provide a notice to shareholders of terms of the proposed settlement by causing the notice to be filed with the SEC on a Form 8-K and posting a link to the notice on the company’s investor relations website. As previously disclosed, the defendants have agreed to pay $2M to resolve all claims in both suits. The company has also incurred some additional fees and expenses associated with finalizing the settlement. It is expected that approximately 90% of the total settlement amount and related expenses will be paid from insurance proceeds.